Correlation Between DAX Index and CITIC Telecom
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and CITIC Telecom International, you can compare the effects of market volatilities on DAX Index and CITIC Telecom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DAX Index with a short position of CITIC Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CITIC Telecom.
Diversification Opportunities for DAX Index and CITIC Telecom
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and CITIC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CITIC Telecom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Telecom Intern and DAX Index is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on DAX Index are associated (or correlated) with CITIC Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Telecom Intern has no effect on the direction of DAX Index i.e., DAX Index and CITIC Telecom go up and down completely randomly.
Pair Corralation between DAX Index and CITIC Telecom
Assuming the 90 days trading horizon DAX Index is expected to generate 8.26 times less return on investment than CITIC Telecom. But when comparing it to its historical volatility, DAX Index is 12.52 times less risky than CITIC Telecom. It trades about 0.11 of its potential returns per unit of risk. CITIC Telecom International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in CITIC Telecom International on September 14, 2024 and sell it today you would earn a total of 18.00 from holding CITIC Telecom International or generate 163.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. CITIC Telecom International
Performance |
| Timeline |
DAX Index and CITIC Telecom Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CITIC Telecom International
Pair trading matchups for CITIC Telecom
Pair Trading with DAX Index and CITIC Telecom
The main advantage of trading using opposite DAX Index and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CITIC Telecom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CITIC Telecom will offset losses from the drop in CITIC Telecom's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| CITIC Telecom vs. Chesapeake Utilities | CITIC Telecom vs. TYSON FOODS A | CITIC Telecom vs. Suntory Beverage Food | CITIC Telecom vs. ScanSource |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |